PA UC weekly claim shows $20 difference between benefit amount and payment amount - why?

Yes, that $20 difference is probably tax withholding. When you first filed your claim, there was a question asking if you wanted federal taxes withheld from your benefits. The standard withholding is 10%, but some people only see a flat amount taken out. You can verify by logging into your account and checking your withholding preferences in your profile settings. If you don't want taxes withheld, you can change it, but remember you'll owe the taxes when you file next year!

The state ALWAYS takes out taxes if u checked that box!!!! I made that mistake my first time on UC and was wondering where my $$$ went too. It's better to have them take it out now though cuz TRUST ME u dont wanna deal with a big tax bill next april!!!

That's definitely tax withholding. But you should check if it's correct - when I was on UC in 2024, they were taking exactly $20 from a $416 benefit which isn't exactly 10%. I called them to fix it and it took FOREVER to get through. I finally used Claimyr (claimyr.com) to reach a PA UC agent after trying for days on my own. They have this service where they basically wait on hold for you and call when an agent is ready. You can see how it works in their video: https://youtu.be/CEPETxZdo9E?si=WL1ZzVZWG3KiHrg2. Saved me so much frustration! The agent confirmed my withholding was set up wrong and fixed it on the spot.

To add some important information: Pennsylvania UC offers three tax withholding options: 1. Federal tax withholding only (which is typically what's happening in your case) 2. No tax withholding at all 3. Both federal and state tax withholding The federal withholding is supposedly 10%, but the system often takes a flat amount that approximates 10% rather than calculating the exact percentage. That's why you're seeing $20 instead of $49.30 (which would be exactly 10% of $493). You can change your withholding preference by logging into your dashboard, going to "Manage My Benefits" and then "Update Tax Withholding." Any changes will apply to future payments only.

this happened to me last month!! i freaked out thinking they were taking money for an overpayment or something lol. but yeah its just taxes. btw dont forget ur gonna get a 1099-G form next january for all ur uc payments for taxes

sumtimes they also take $ out if u owe child support FYI

Has anyone else noticed that the UC system is TERRIBLE at explaining these things?? They should put this info right on the payment screen! I had to learn about the tax withholding from my brother who went through this last year. The whole system is designed to confuse people I swear!!

i had this exact problem too. i actually ended up calling and the lady on the phone explained that most people don't realize they selected tax withholding when they first applied. she said its usually better to keep it that way though unless you're setting aside money yourself for taxes. unemployment benefits are 100% taxable income.